Health Savings Account Tax Deduction To Be Signed Into Law

Governor Walker will sign a bill into law today creating a state income tax deduction for contributions to Health Savings Accounts (HSAs).  The bill was passed by the Legislature as part of the special session on economic recovery.

HSA contributions are already exempt from federal taxation. Wisconsin has been one of only a handful of states to still tax contributions.

HSAs are savings accounts owned by an individual that can be used for minor medical expenses, such as office visits and regular preventative care.  A growing number of employers choose to make HSAs available to employees, and they are also popular among the self-employed. A high-deductible health insurance plan is used in conjunction with an HSA to cover major medical expenses.

HSAs allow individuals to take control of their medical decisions. Using the money from their HSA, an individual health care consumer can pay for the medical treatments they deem necessary, with the provider they prefer, without having a gatekeeper tell them what care they can or cannot receive and what doctor they must see. Unlike health insurance offered by an employer, HSAs are portable, remaining with an individual from job to job or if they leave the workforce.

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2 Responses

  1. James P.


    Do you think this kind of legislation will help those at all income after the TEA Party Republicans repeal Obama Care by passing the Health Care Jobs Killing Bill? Once we get an additional 30,000 million people off Obama care, I sure that those people will jump on the opportunity of take money out of their weekly paycheck and save it for a rainy, medical day.

    I over heard two waitress at the local cafe discussing another waitress who was verty sick because she couldn’t afford medical attention for herself because she had to sick kids to deal with. One of those waitresses was coughing alot and said she probably shouldn’t be at work but she can’t a fford to stay home. She also said she can’t afford to go to the clinic let alone pay for the prescription.

    Are these the kind of people who will benefit from HSA’s?

  2. Elisabeth Nelson

    In response to James P.
    I don’t understand what you mean by, “take money out of their weekly
    paycheck.” It is their money and they earned it. They take money out of their paycheck to pay for food, shelter, bills, etc., just like some others take money out of their government check.

    Rich or poor, you can go to the doctor or clinic for the common cold and there is nothing the doctor can do about it because there is no cure for the common cold. Any perscription you might obtain from the doctor would be to ease the symptoms and, in my experience, next to worthless.

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